Callaway Golf Company Announces Record Net Sales And Earnings For The Third Quarter Of 2020
"The world is embracing golf in a way that has led to a record quarter for the industry and our company," commented
GAAP and Non-GAAP Results
In addition to the Company's results prepared in accordance with GAAP, the Company provided information on a non-GAAP basis. The purpose of this non-GAAP presentation is to provide additional information to investors regarding the underlying performance of the Company's business without certain non-cash amortization of intangibles and other assets related to the Company's acquisitions, non-recurring transaction and transition costs related to acquisitions, and other non-recurring costs, including costs related to the transition to the Company's new North American Distribution Center, implementation of a new IT system for Jack Wolfskin, severance costs related to the Company's cost-reduction initiatives, the
Summary of Third Quarter 2020 Financial Results
The Company announced the following GAAP and non-GAAP financial results for the third quarter of 2020 (in millions, except EPS):
GAAP RESULTS |
NON-GAAP PRESENTATION |
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Q3 2020 |
Q3 2019 |
Change |
Q3 2020 Non-GAAP |
Q3 2019 |
Change |
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Gross Profit % of Sales |
42.2% |
44.9% |
(270) bps |
42.7% |
44.9% |
(220) bps |
|
Operating Expenses |
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( |
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( |
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Other Income / |
( |
( |
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( |
( |
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Income Tax |
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Net Income/(Loss) |
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|
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Earnings/ |
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Q3 2020 |
Q3 2019 |
Change |
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Adjusted EBITDAS |
|
|
|
For the third quarter of 2020, the Company's net sales increased
For the third quarter of 2020, the Company's gross margin decreased 270 basis points to 42.2% compared to 44.9% for the third quarter of 2019. Non-GAAP gross margin decreased 220 basis points to 42.7% compared to 44.9% for the third quarter of 2019. The decrease is primarily attributable to a decline in gross margin in the soft goods segment due to the impact of COVID-19 on that business, including the decreased sales and the Company's proactive inventory reduction initiatives, and was partially offset by favorable changes in foreign currency exchange rates, an increase in the Company's e-commerce sales and a slight increase in golf equipment gross margins.
Operating expenses decreased
Third quarter 2020 fully diluted earnings per share was
Summary of First Nine Months 2020 Financial Results
The Company announced the following GAAP and non-GAAP financial results for the first nine months of 2020 (in millions, except EPS):
GAAP RESULTS |
NON-GAAP PRESENTATION |
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First Nine |
First Nine |
Change |
First Nine Non-GAAP |
First Nine |
Change |
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( |
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|
( |
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Gross Profit % of Sales |
42.7% |
45.8% |
( (310) bps |
43.3% |
46.6% |
( (330) bps |
|
Operating Expenses |
|
|
|
|
|
( |
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Other Income |
( |
( |
|
( |
( |
|
|
Income Tax Provision |
|
|
( |
|
|
( |
|
Net Income/(Loss) |
( |
|
( |
|
|
( |
|
Earnings/(Loss) |
( |
|
( |
|
|
( |
Q3 YTD 2020 |
Q3 YTD 2019 |
Change |
|
Adjusted EBITDAS |
|
|
( |
For the first nine months of 2020, the Company's net sales decreased
For the first nine months of 2020, the Company's gross margin decreased 310 basis points to 42.7% compared to 45.8% for the same period in 2019. Non-GAAP gross margin decreased 330 basis points to 43.3% compared to 46.6% for the first nine months of 2019. The decrease in non-GAAP gross margin is primarily attributable to the decrease in sales related to the COVID-19 pandemic, the proactive soft goods inventory reduction initiatives, and costs associated with idle facilities during the government mandated shut-down. The decrease in gross margin during the first nine months was partially offset by an increase in the Company's e-commerce business.
Operating expenses increased
First nine months of 2020 loss per share was
Outlook
The Company previously reported that it suspended its prior financial guidance for 2020 due to the uncertainty around the COVID-19 pandemic. Furthermore, while both the Company's golf and apparel businesses have been recovering more quickly than the Company expected, there has been a recent uptick in COVID-19 cases around the globe as well as some increase in regulatory restrictions designed to mitigate the COVID-19 impact. As a result, the Company is not providing financial guidance for the fourth quarter of 2020.
Conference Call and Webcast
The Company will be holding a conference call at
The Company previously announced that it had entered into a merger agreement with
Non-GAAP Information
The GAAP results contained in this press release and the financial statement schedules attached to this press release have been prepared in accordance with accounting principles generally accepted in
Constant Currency Basis. The Company provided certain information regarding the Company's financial results or projected financial results on a "constant currency basis." This information estimates the impact of changes in foreign currency rates on the translation of the Company's current or projected future period financial results as compared to the applicable comparable period. This impact is derived by taking the current or projected local currency results and translating them into
Non-Recurring and Non-cash Adjustments. The Company provided information excluding certain non-cash amortization of intangibles and other assets related to the Company's acquisitions, non-recurring transaction and transition costs related to acquisitions, and other non-recurring costs, including costs related to the transition to the Company's new North American Distribution Center, implementation of a new IT system for Jack Wolfskin, severance costs related to the Company's cost-reduction initiatives, the
Adjusted EBITDAS. The Company provides information about its results excluding interest, taxes, depreciation and amortization expenses, non-cash stock compensation expense, and the non-recurring and non-cash items referenced above.
In addition, the Company has included in the schedules to this release a reconciliation of certain non-GAAP information to the most directly comparable GAAP information. The non-GAAP information presented in this release and related schedules should not be considered in isolation or as a substitute for any measure derived in accordance with GAAP. The non-GAAP information may also be inconsistent with the manner in which similar measures are derived or used by other companies. Management uses such non-GAAP information for financial and operational decision-making purposes and as a means to evaluate period-over-period comparisons and in forecasting the Company's business going forward. Management believes that the presentation of such non-GAAP information, when considered in conjunction with the most directly comparable GAAP information, provides additional useful comparative information for investors in their assessment of the underlying performance of the Company's business with regard to these items. The Company has provided reconciling information in the attached schedules.
Additional Information and Where You Can Find It
The Company will file with the
No Offer or Solicitation
This communication is for information purposes only and is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote in any jurisdiction pursuant to the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Participants in the Solicitation
The Company, Topgolf, and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the stockholders of the Company in connection with the proposed transaction. Information regarding the persons who are, under the rules of the
Forward-Looking Statements
Statements used in this press release that relate to future plans, events, financial results, performance, prospects, or growth opportunities, including statements relating to the Company's sales, future industry and market conditions, strength of the Company's brands and products, the continued impact of the COVID-19 pandemic on the Company's business, results of operations and financial condition and the impact of any measures taken to mitigate the effect of the pandemic, the Company's continued efforts to effectively manage its cost/expense reduction, growth, momentum and opportunities in the golf and soft goods industries, post-pandemic consumer trends and behavior, the Company's continued ability to improve and recover from the impact of the COVID-19 pandemic, the benefits of the business combination transaction involving the Company and Topgolf, including the anticipated operations, financial position, liquidity, performance, prospects or growth and scale opportunities of the Company, Topgolf or the combined company, the strategies, prospects, plans, expectations or objectives of management of the Company or Topgolf for future operations of the combined company, any statements regarding the approval and closing of the merger, including the need for stockholder approval and the satisfaction of closing conditions, and statements of belief and any statement of assumptions underlying any of the foregoing, are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "estimate," "could," "should," "intend," "may," "plan," "seek," "anticipate," "project" and similar expressions, among others, generally identify forward-looking statements, which speak only as of the date the statements were made and are not guarantees of future performance. These statements are based upon current information and expectations. Accurately estimating the forward-looking statements is based upon various risks and unknowns, including disruptions to business operations from additional regulatory restrictions in response to COVID-19 pandemic (such as travel restrictions, government-mandated shut-down orders or quarantines) or voluntary "social distancing" that affects employees, customers and suppliers; risks and uncertainties related to our pending merger with Topgolf, including the failure to obtain, or delays in obtaining shareholder approval or required regulatory approval, the risk that such regulatory approval may result in the imposition of conditions that could adversely affect the Company or the expected benefits of the proposed transaction, any termination fee that may be payable by the Company pursuant to the terms of the merger agreement, or the failure to satisfy any of the closing conditions to the proposed transaction on a timely basis or at all; costs, expenses or difficulties related to the merger with Topgolf, including the integration of the Topgolf business; failure to realize the expected benefits and synergies of the proposed transaction in the expected timeframes or at all; the potential impact of the announcement, pendency or consummation of the proposed transaction on relationships with the Company's and/or Topgolf's employees, customers, suppliers and other business partners; the risk of litigation or regulatory actions to the Company and/or Topgolf; production delays, closures of manufacturing facilities, retail locations, warehouses and supply and distribution chains; staffing shortages as a result of remote working requirements or otherwise; uncertainty regarding global economic conditions, particularly the uncertainty related to the duration and impact of the COVID-19 pandemic, and related decreases in customer demand and spending; our level of indebtedness; continued availability of credit facilities and liquidity and ability to comply with applicable debt covenants; effectiveness of capital allocation and cost/expense reduction efforts; continued brand momentum and product success; growth in the direct-to-consumer and e-commerce channels; consumer acceptance of and demand for the Company's and its subsidiaries' products; competitive pressures; any changes in
* * * * *
About
*****
Contacts: |
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(760) 931-1771 |
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ASSETS |
|||||||||
Current assets: |
|||||||||
Cash and cash equivalents |
$ |
286,656 |
$ |
106,666 |
|||||
Accounts receivable, net |
239,650 |
140,455 |
|||||||
Inventories |
324,852 |
456,639 |
|||||||
Other current assets |
73,988 |
85,590 |
|||||||
Total current assets |
925,146 |
789,350 |
|||||||
Property, plant and equipment, net |
145,758 |
132,760 |
|||||||
Operating lease right-of-use assets, net |
186,721 |
160,098 |
|||||||
Intangible assets, net |
531,014 |
697,166 |
|||||||
Deferred taxes, net |
51,872 |
73,948 |
|||||||
Investment in golf-related ventures |
111,442 |
90,134 |
|||||||
Other assets |
14,355 |
17,092 |
|||||||
Total assets |
$ |
1,966,308 |
$ |
1,960,548 |
|||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current liabilities: |
|||||||||
Accounts payable and accrued expenses |
$ |
245,053 |
$ |
276,300 |
|||||
Accrued employee compensation and benefits |
33,522 |
46,891 |
|||||||
Asset-based credit facilities |
30,235 |
144,580 |
|||||||
Accrued warranty expense |
9,640 |
9,636 |
|||||||
Current operating lease liabilities |
28,011 |
26,418 |
|||||||
Long-term debt, current portion |
14,623 |
7,317 |
|||||||
Income tax liability |
10,326 |
12,104 |
|||||||
Total current liabilities |
371,410 |
523,246 |
|||||||
Long-term debt |
651,011 |
443,259 |
|||||||
Long-term operating lease liabilities |
170,732 |
137,696 |
|||||||
Long-term liabilities |
84,621 |
88,994 |
|||||||
|
688,534 |
767,353 |
|||||||
Total liabilities and shareholders' equity |
$ |
1,966,308 |
$ |
1,960,548 |
|
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Three Months Ended |
|||||||
2020 |
2019 |
||||||
Net sales |
$ |
475,559 |
$ |
426,217 |
|||
Cost of sales |
274,826 |
234,828 |
|||||
Gross profit |
200,733 |
191,389 |
|||||
Operating expenses: |
|||||||
Selling |
93,855 |
101,984 |
|||||
General and administrative |
33,230 |
36,378 |
|||||
Research and development |
10,139 |
12,538 |
|||||
Total operating expenses |
137,224 |
150,900 |
|||||
Income from operations |
63,509 |
40,489 |
|||||
Other expense, net |
(5,717) |
(7,313) |
|||||
Income before income taxes |
57,792 |
33,176 |
|||||
Income tax provision |
5,360 |
2,128 |
|||||
Net income |
$ |
52,432 |
$ |
31,048 |
|||
Earnings per common share: |
|||||||
Basic |
|
|
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Diluted |
|
|
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Weighted-average common shares outstanding: |
|||||||
Basic |
94,171 |
94,100 |
|||||
Diluted |
96,612 |
96,287 |
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Nine Months Ended |
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2020 |
2019 |
||||||
Net sales |
$ |
1,214,831 |
$ |
1,389,122 |
|||
Cost of sales |
696,369 |
752,483 |
|||||
Gross profit |
518,462 |
636,639 |
|||||
Operating expenses: |
|||||||
Selling |
285,082 |
334,418 |
|||||
General and administrative |
98,972 |
108,739 |
|||||
Research and development |
33,399 |
38,158 |
|||||
|
174,269 |
— |
|||||
Total operating expenses |
591,722 |
481,315 |
|||||
Income/(loss) from operations |
(73,260) |
155,324 |
|||||
Other expense, net |
(6,518) |
(27,985) |
|||||
Income/(loss) before income taxes |
(79,778) |
127,339 |
|||||
Income tax provision |
6,580 |
18,892 |
|||||
Net Income/(loss) |
(86,358) |
108,447 |
|||||
Less: Net loss attributable to non-controlling interest |
— |
(179) |
|||||
Net income/(loss) attributable to |
$ |
(86,358) |
$ |
108,626 |
|||
Earnings/(loss) per common share: |
|||||||
Basic |
( |
|
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Diluted |
( |
|
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Weighted-average common shares outstanding: |
|||||||
Basic |
94,207 |
94,284 |
|||||
Diluted |
94,207 |
96,197 |
|
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Nine Months Ended |
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2020 |
2019 |
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Cash flows from operating activities: |
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Net income (loss) |
$ |
(86,358) |
$ |
108,447 |
|||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
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Depreciation and amortization |
28,668 |
25,471 |
|||||
Lease amortization expense |
24,293 |
23,615 |
|||||
Amortization of debt issuance costs |
3,024 |
2,428 |
|||||
Debt discount amortization |
3,857 |
— |
|||||
Inventory step-up on acquisition |
— |
10,703 |
|||||
Impairment loss |
174,269 |
— |
|||||
Deferred taxes, net |
(117) |
8,407 |
|||||
Non-cash share-based compensation |
8,066 |
9,476 |
|||||
Loss on disposal of long-lived assets |
297 |
649 |
|||||
Gain on conversion of note receivable |
(1,252) |
— |
|||||
Unrealized net (gains) losses on hedging instruments |
(8,899) |
999 |
|||||
Changes in assets and liabilities |
(23,297) |
(126,342) |
|||||
Net cash provided by operating activities |
122,551 |
63,853 |
|||||
Cash flows from investing activities: |
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Capital expenditures |
(30,911) |
(36,843) |
|||||
Investments in golf related ventures |
(19,999) |
— |
|||||
Acquisitions, net of cash acquired |
— |
(463,105) |
|||||
Proceeds from sales of property and equipment |
8 |
43 |
|||||
Net cash used in investing activities |
(50,902) |
(499,905) |
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Cash flows from financing activities: |
|||||||
Proceeds from issuance of convertible notes |
258,750 |
— |
|||||
Proceeds from issuance of long-term debt |
37,728 |
493,167 |
|||||
Premium paid for capped call confirmations |
(31,775) |
— |
|||||
Debt issuance cost |
(9,143) |
(19,088) |
|||||
(Repayments of) proceeds from credit facilities, net |
(114,345) |
70,411 |
|||||
Repayments of long-term debt |
(8,203) |
(34,298) |
|||||
Repayments of financing leases |
(530) |
(583) |
|||||
Exercise of stock options |
130 |
— |
|||||
Dividends paid, net |
(1,891) |
(2,834) |
|||||
Acquisition of treasury stock |
(22,143) |
(27,505) |
|||||
Purchase of non-controlling interest |
— |
(18,538) |
|||||
Net cash provided by financing activities |
108,578 |
460,732 |
|||||
Effect of exchange rate changes on cash and cash equivalents |
(237) |
(445) |
|||||
Net increase in cash and cash equivalents |
179,990 |
24,235 |
|||||
Cash and cash equivalents at beginning of period |
106,666 |
63,981 |
|||||
Cash and cash equivalents at end of period |
$ |
286,656 |
$ |
88,216 |
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Three Months Ended |
Growth/(Decline) |
Non-GAAP Constant Currency vs. 2019(1) |
Nine Months Ended |
Decline |
Non-GAAP Constant Currency vs. 2019(1) |
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2020 |
2019 |
Dollars |
Percent |
Percent |
2020 |
2019 |
Dollars |
Percent |
Percent |
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Net sales: |
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|
$ |
209,356 |
$ |
168,005 |
$ |
41,351 |
24.6% |
23.5% |
$ |
616,620 |
$ |
653,531 |
$ |
(36,911) |
-5.6% |
-5.6% |
|||||||||||||||
Golf Balls |
57,921 |
42,497 |
15,424 |
36.3% |
35.1% |
152,261 |
172,943 |
(20,682) |
-12.0% |
-11.9% |
|||||||||||||||||||||
Apparel |
125,609 |
139,998 |
(14,389) |
-10.3% |
-13.0% |
239,201 |
309,439 |
(70,238) |
-22.7% |
-23.4% |
|||||||||||||||||||||
Gear and Other |
82,673 |
75,717 |
6,956 |
9.2% |
6.7% |
206,749 |
253,209 |
(46,460) |
-18.3% |
-18.5% |
|||||||||||||||||||||
$ |
475,559 |
$ |
426,217 |
$ |
49,342 |
11.6% |
9.7% |
$ |
1,214,831 |
$ |
1,389,122 |
$ |
(174,291) |
-12.5% |
-12.7% |
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(1) Calculated by applying 2019 exchange rates to 2020 reported sales in regions outside the |
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Three Months Ended |
Growth/(Decline) |
Non-GAAP Constant Currency vs. 2019(1) |
Nine Months Ended |
Decline |
Non-GAAP Constant Currency vs. 2019(1) |
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2020 |
2019 |
Dollars |
Percent |
Percent |
2020 |
2019 |
Dollars |
Percent |
Percent |
||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
|
$ |
214,619 |
$ |
161,631 |
$ |
52,988 |
32.8% |
32.8% |
$ |
603,836 |
$ |
658,051 |
$ |
(54,215) |
-8.2% |
-8.2% |
|||||||||||||||
|
134,680 |
133,351 |
1,329 |
1.0% |
-3.9% |
281,473 |
341,594 |
(60,121) |
-17.6% |
-18.5% |
|||||||||||||||||||||
|
56,530 |
64,176 |
(7,646) |
-11.9% |
-13.0% |
158,517 |
193,080 |
(34,563) |
-17.9% |
-19.0% |
|||||||||||||||||||||
Rest of World |
69,730 |
67,059 |
2,671 |
4.0% |
2.5% |
171,005 |
196,397 |
(25,392) |
-12.9% |
-11.4% |
|||||||||||||||||||||
$ |
475,559 |
$ |
426,217 |
$ |
49,342 |
11.6% |
9.7% |
$ |
1,214,831 |
$ |
1,389,122 |
$ |
(174,291) |
-12.5% |
-12.7% |
||||||||||||||||
(1) Calculated by applying 2019 exchange rates to 2020 reported sales in regions outside the |
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Operating Segment Information |
Operating Segment Information |
||||||||||||||||||||||||||||||
Three Months Ended |
Growth/(Decline) |
Non-GAAP Constant Currency vs. 2019(1) |
Nine Months Ended |
Decline |
Non-GAAP Constant Currency vs. 2019(1) |
||||||||||||||||||||||||||
2020 |
2019 |
Dollars |
Percent |
Percent |
2020 |
2019 |
Dollars |
Percent |
Percent |
||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Golf Equipment |
$ |
267,277 |
$ |
210,502 |
$ |
56,775 |
27.0% |
25.8% |
$ |
768,881 |
$ |
826,474 |
$ |
(57,593) |
-7.0% |
-6.9% |
|||||||||||||||
Apparel, Gear and Other |
208,282 |
215,715 |
(7,433) |
-3.4% |
-6.1% |
445,950 |
562,648 |
(116,698) |
-20.7% |
-21.2% |
|||||||||||||||||||||
$ |
475,559 |
$ |
426,217 |
$ |
49,342 |
11.6% |
9.7% |
$ |
1,214,831 |
$ |
1,389,122 |
$ |
(174,291) |
-12.5% |
-12.7% |
||||||||||||||||
Income (loss) before income taxes: |
|||||||||||||||||||||||||||||||
Golf Equipment |
$ |
56,784 |
$ |
23,124 |
$ |
33,660 |
145.6% |
$ |
144,585 |
$ |
148,782 |
$ |
(4,197) |
-2.8% |
|||||||||||||||||
Apparel, Gear and Other |
25,909 |
34,877 |
(8,968) |
-25.7% |
10,399 |
68,909 |
(58,510) |
-84.9% |
|||||||||||||||||||||||
Reconciling items(2) |
(24,901) |
(24,825) |
(76) |
0.3% |
(234,762) |
(90,352) |
(144,410) |
159.8% |
|||||||||||||||||||||||
$ |
57,792 |
$ |
33,176 |
$ |
24,616 |
74.2% |
$ |
(79,778) |
$ |
127,339 |
$ |
(207,117) |
-162.7% |
||||||||||||||||||
(1) Calculated by applying 2019 exchange rates to 2020 reported sales in regions outside the |
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(2) Amount includes corporate general and administrative expenses and other income (expense) not utilized by management in determining segment profitability, as well as amortization expense of intangible assets from the acquisitions of OGIO, TravisMathew and Jack Wolfskin. In addition, the reconciling items for 2020 include (i) an impairment charge of |
|
||||||||||||||||||||||||||||||||||||
Three Months Ended |
||||||||||||||||||||||||||||||||||||
2020 |
2019 |
|||||||||||||||||||||||||||||||||||
GAAP |
Non-Cash |
Non-Cash |
Other Non- |
Non- |
GAAP |
Non-Cash |
Acquisition |
Non- |
||||||||||||||||||||||||||||
Gross profit |
$ |
200,733 |
$ |
— |
$ |
— |
$ |
(2,366) |
$ |
203,099 |
$ |
191,389 |
$ |
— |
$ |
— |
$ |
191,389 |
||||||||||||||||||
Operating expenses, net |
137,224 |
1,235 |
— |
1,178 |
134,811 |
150,900 |
1,208 |
3,009 |
146,683 |
|||||||||||||||||||||||||||
Income (loss) from operations |
63,509 |
(1,235) |
— |
(3,544) |
68,288 |
40,489 |
(1,208) |
(3,009) |
44,706 |
|||||||||||||||||||||||||||
Other expense, net |
(5,717) |
— |
(2,415) |
— |
(3,302) |
(7,313) |
— |
— |
(7,313) |
|||||||||||||||||||||||||||
Income tax provision (benefit) |
5,360 |
(284) |
(555) |
(815) |
7,014 |
2,128 |
(278) |
(692) |
3,098 |
|||||||||||||||||||||||||||
Net income (loss) attributable to Callaway |
$ |
52,432 |
$ |
(951) |
$ |
(1,860) |
$ |
(2,729) |
$ |
57,972 |
$ |
31,048 |
$ |
(930) |
$ |
(2,317) |
$ |
34,295 |
||||||||||||||||||
Diluted earnings (loss) per share: |
$ |
0.54 |
$ |
(0.01) |
$ |
(0.02) |
$ |
(0.03) |
$ |
0.60 |
$ |
0.32 |
$ |
(0.01) |
$ |
(0.03) |
$ |
0.36 |
||||||||||||||||||
(1) Represents amortization expense of intangible assets from the acquisitions of OGIO, TravisMathew and Jack Wolfskin. |
||||||||||||||||||||||||||||||||||||
(2) Represents the non-cash amortization of the debt discount on the convertible notes issued in |
||||||||||||||||||||||||||||||||||||
(3) Represents non-recurring costs associated with the Company's transition to its new North America Distribution Center, implementation of new IT systems for Jack Wolfskin, and |
||||||||||||||||||||||||||||||||||||
(4) Represents certain non-recurring costs, including consulting, professional fees and other costs associated with the acquisition of Jack Wolfskin. |
|
||||||||||||||||||||||||||||||||||||
Nine Months Ended |
||||||||||||||||||||||||||||||||||||
2020 |
2019 |
|||||||||||||||||||||||||||||||||||
GAAP |
Non-Cash |
Non-Cash |
Other Non- |
Non- |
GAAP |
Non-Cash |
Acquisition |
Non- |
||||||||||||||||||||||||||||
Gross profit |
$ |
518,462 |
$ |
— |
$ |
— |
$ |
(6,988) |
$ |
525,450 |
$ |
636,639 |
$ |
(10,703) |
$ |
— |
$ |
647,342 |
||||||||||||||||||
Operating expenses |
591,722 |
177,861 |
— |
3,994 |
409,867 |
481,315 |
3,624 |
9,335 |
468,356 |
|||||||||||||||||||||||||||
Income (loss) from operations |
(73,260) |
(177,861) |
— |
(10,982) |
115,583 |
155,324 |
(14,327) |
(9,335) |
178,986 |
|||||||||||||||||||||||||||
Other expense, net |
(6,518) |
— |
(3,914) |
— |
(2,604) |
(27,985) |
— |
(3,896) |
(24,089) |
|||||||||||||||||||||||||||
Income tax provision (benefit) |
6,580 |
(8,750) |
(900) |
(2,526) |
18,756 |
18,892 |
(3,295) |
(3,043) |
25,230 |
|||||||||||||||||||||||||||
Net income (loss) attributable to Callaway |
$ |
(86,358) |
$ |
(169,111) |
$ |
(3,014) |
$ |
(8,456) |
$ |
94,223 |
$ |
108,626 |
$ |
(11,032) |
$ |
(10,188) |
$ |
129,846 |
||||||||||||||||||
Diluted earnings (loss) per share: |
$ |
(0.92) |
$ |
(1.80) |
$ |
(0.03) |
$ |
(0.09) |
$ |
0.98 |
$ |
1.13 |
$ |
(0.11) |
$ |
(0.11) |
$ |
1.35 |
||||||||||||||||||
(1) Represents amortization expense of intangible assets from the acquisitions of OGIO, TravisMathew and Jack Wolfskin. In addition, 2020 includes an impairment charge of |
||||||||||||||||||||||||||||||||||||
(2) Represents the non-cash amortization of the debt discount on the convertible notes issued in |
||||||||||||||||||||||||||||||||||||
(3) Represents certain non-recurring costs, including costs associated with the Company's transition to its new North America Distribution Center and the implementation of new IT systems for Jack Wolfskin, as well as |
||||||||||||||||||||||||||||||||||||
(4) Total earnings per share on a non-GAAP basis for the nine months ended |
||||||||||||||||||||||||||||||||||||
(5) Represents certain non-recurring costs, including consulting, professional fees and other costs associated with the acquisition of Jack Wolfskin. |
|
|||||||||||||||||||||||||||||||||||||||
2020 Trailing Twelve Month Adjusted EBITDAS |
2019 Trailing Twelve Month Adjusted EBITDAS |
||||||||||||||||||||||||||||||||||||||
Quarter Ended |
Quarter Ended |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
2019 |
2020 |
2020 |
2020 |
Total |
2018 |
2019 |
2019 |
2019 |
Total |
||||||||||||||||||||||||||||||
Net income (loss) |
$ |
(29,218) |
$ |
28,894 |
$ |
(167,684) |
$ |
52,432 |
$ |
(115,576) |
$ |
(28,499) |
$ |
48,647 |
$ |
28,931 |
$ |
31,048 |
$ |
80,127 |
|||||||||||||||||||
Interest expense, net |
9,049 |
9,115 |
12,163 |
12,727 |
43,054 |
704 |
9,639 |
10,260 |
9,545 |
30,148 |
|||||||||||||||||||||||||||||
Income tax provision (benefit) |
(2,352) |
9,151 |
(7,931) |
5,360 |
4,228 |
(9,783) |
9,556 |
7,208 |
2,128 |
9,109 |
|||||||||||||||||||||||||||||
Depreciation and amortization expense |
9,480 |
8,997 |
9,360 |
10,311 |
38,148 |
5,186 |
7,977 |
9,022 |
8,472 |
30,657 |
|||||||||||||||||||||||||||||
JW goodwill and trade name impairment |
— |
— |
174,269 |
— |
174,269 |
— |
— |
— |
— |
— |
|||||||||||||||||||||||||||||
Non-cash stock compensation expense |
3,418 |
1,861 |
2,942 |
3,263 |
11,484 |
3,555 |
3,435 |
3,530 |
2,513 |
13,033 |
|||||||||||||||||||||||||||||
EBITDAS |
$ |
(9,623) |
$ |
58,018 |
$ |
23,119 |
$ |
84,093 |
$ |
155,607 |
$ |
(28,837) |
$ |
79,254 |
$ |
58,951 |
$ |
53,706 |
$ |
163,074 |
|||||||||||||||||||
Acquisitions & other non-recurring costs, |
4,090 |
1,516 |
5,856 |
2,858 |
14,320 |
(2,269) |
13,986 |
6,939 |
3,009 |
21,665 |
|||||||||||||||||||||||||||||
Adjusted EBITDAS |
$ |
(5,533) |
$ |
59,534 |
$ |
28,975 |
$ |
86,951 |
$ |
169,927 |
$ |
(31,106) |
$ |
93,240 |
$ |
65,890 |
$ |
56,715 |
$ |
184,739 |
|||||||||||||||||||
(1) In 2020, amounts represent certain non-recurring costs, including costs associated with the Company's transition to its new North America Distribution Center and the implementation of new IT systems for Jack Wolfskin, as well as |
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